Dippin’ Dots
Date Incorporation: 1999
Franchising Since: 1999
Headquarters: Paducah, Kentucky
Description: Dippin’ Dots Franchising (DDF) offers services and support for Dippin' Dots® Franchised Businesses. Dippin' Dots Inc. makes Dippin' Dots® ice cream, frozen yogurt, sherbet and ice products
Franchise Offer: Dippin’ Dots offers to franchise a retail store or vending machines featuring the sale of novelty frozen ice cream, yogurt, sherbet and ice products. A franchisee will sell products and services to the general public.
Financial Assistance: Dippin’ Dots Franchising does not offer direct or indirect financing. Dippin’ Dots Franchising does not guarantee the franchisee’s note, lease or obligation.
Training and Assistance: Dippin’ Dots Franchising will provide basic management training for up to two persons during a five-day training period (minimum of seven hours per day) at Dippin’ Dots Franchising offices or a designated Dippin' Dots business. The franchisee must pass the basic management training test. In addition to a written test, basic management training includes instruction in marketing, promotion and advertising, sales techniques and computer applications. If the franchisee fails to complete the basic management training Dippin’ Dots Franchising may terminate the franchise agreement.
Territory: Dippin’ Dots Franchising grants the right to operate the franchised business at an approved location within a protected territory.
Term of the Franchise Agreement and renewal: The term of the franchise agreement is 5 years. A franchisee may renew the term of this agreement for two additional consecutive terms of five years each.
Obligations and Restrictions: An on-site manager who has successfully completed the basic management training program must directly supervise the franchise. A franchisee must offer and sell all goods and services that Dippin’ Dots Franchising requires for all franchisees and Dippin’ Dots Franchising has the right to add or remove products or services offered by the franchisee. A franchise owner must keep the Franchised Business open and in normal operation for the minimum hours and days that Dippin’ Dots Franchising requires.
Total Number of Units 2007: 445
Investment Tables:
Initial Investment:
| Expenditure | Low | High |
|---|---|---|
| Initial Franchise Fee | $12,500 | $12,500 |
| Grand Opening Advertising Expenditure | $500 | $2,500 |
| Credit Card and Gift Card Processing | $755 | $800 |
| Office and Store Supplies | $100 | $500 |
| Opening Inventory | $3,024 | $6,800 |
| Printing and Signage | $499 | $5000 |
| Equipment / Built-Out | $42,300 | $147,500 |
| Travel, Lodging, Meals, Ect for Initial Training | $1,750 | $3,650 |
| Security deposits and prepaid rent | $500 | $15,000 |
| Miscellaneous Start-up Cost | $5,000 | $15,000 |
| Additional Funds (6 months) | $13,000 | $26,000 |
| Totals | $80,428 | $235,250 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Royalty | 4% of weekly Gross Sales. |
| Contributions to National Advertising Fund | 2% of Gross Sales |
| Contributions to Regional Fund Advertising | Maximum amount shall not exceed 2% of Gross Sales |
| Training Fees | The initial training is free |
| Additional training | $75 per day per person. + out of pocket expenses |
| Maintenance and repairs | Actual cost to DDF |
| Insurance Coverage | Cost of the insurance to DDF |
| Reimbursement of Audit Cost | Cost of Audit |
| Deficiencies | Actual cost to DDF |
| Option Fee | $250 |
| Transfer fee | The greater of $5,000 |
| Interest on late Payments | None |
| Late Charge | $75.00 |
| Service Charge for insufficient Funds for ACH Debit | $50 |
| Indemnification | Actual Cost of DDF |
| Franchise Council Dues | $100.00 |
The above information has been taken from the UFOC/FDD of Dippin' Dots
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